If customer lifetime value (CLTV) isn’t your “North Star” metric, at the very least, it’s one of the fundamental metrics you use to keep a pulse on your brand’s health and profitability trends. Let’s take a look at how you can analyze your Yotpo Reviews data via Daasity, an omnichannel data and analytics platform, and leverage those analyses to guide decision-making that leads to higher CLTV.
3 Yotpo Reviews data analyses
Everyone loves a good top 10 list; they’re easy to understand and digest, particularly in the context of exploring data and performance. Here’s a breakdown of Yotpo Reviews data into three top 10 lists that are launchpads for uncovering insights:
1. Ratings for top 10 products sold
We’ll start with a fundamental top 10. This analysis allows you to understand your top 10 most popular products on the basis of all-time units sold along with their corresponding ratings. In other words, what ten products have you sold the most, and how much do your customers like those products?
2. Top 10 products sold (by count) with a 3-star rating or less
Next, we have a top 10 that might be a bit tougher to look at. We always want customers to love our products, but exploring lower Yotpo Ratings is a must in order to ensure we supply customers with more of what they want — and less of what they don’t.
This data allows you to understand your top 10 products on the basis of most units sold while also having an average rating of 3 stars or less. In other words, which low-rated products are you selling the most?
3. Top 10 products sold (by count) with a 5-star rating
Lastly, we have a top 10 that examines your best-of-the-best (time to pat yourself on the back a bit!). This data allows you to understand your top 10 products on the basis of most units sold while also having a 5-star average rating and at least one review. In other words, which are your bestselling and highest-rated products?
Using these analyses, we can get to what everyone is waiting for …
Uncovering insights from your Yotpo Reviews to drive higher CLTV
Leveraging analysis #1: Ratings for top 10 products sold
A quick glance at your bestsellers’ ratings provides a litmus test on whether they meet your expectations or not. While we can’t run through every possible variation of “If you see X in your Yotpo data, do Y,” let’s consider a CLTV-oriented scenario with this data:
If you have a product that has recently jumped into your top five in terms of sales volume and ratings, you might want to start testing the bestselling SKU as a featured product in your acquisition marketing. At Daasity, we’ve found that across the board, certain SKUs as first purchases lead to higher overall customer lifetime value. If you ID those SKUs, you can bet that you’ll build more CLTV.
Bonus tip: If your No. 1 bestseller — your hero product — has a high rating, that’s great. This means that you can expand into other channels and feel confident in leading that charge with your hero product.
For example, if you start selling on Amazon, we strongly recommend selling your hero product (you may consider only selling and advertising your hero product there, which is common for some of the most successful brands on Amazon.
Leveraging analysis #2: Top 10 products sold (by count) with a 3-star rating or less
Using this data, you can implement some more defensive maneuvers and potentially make some hot fixes to your marketing.
- (Protect CLTV) Low ratings on acquisition SKUs: If you’re selling a high volume of a low-rated acquisition SKU, there’s a higher chance that your first interactions with those new customers may be a negative one. This means that those customers won’t return for repeat purchases, thereby lowering your customer lifetime value. In this case, our recommendation is to pull those ads featuring the low-rated product and choose to feature a highly rated product instead.
- (Increase CLTV) Fix a potentially poor first impression: If a customer had a negative first impression with your brand, you might be able to repair the relationship and start building customer lifetime value by driving repeat purchases. We recommend that you segment customers by their first purchase and identify those customers who may have purchased a low-rated product. Then, offer highly-rated products to retain them as customers, potentially including some user-generated content (UGC) or product ratings of the more popular product.
Leveraging analysis #3: Top 10 products sold (by count) with a 5-star rating
This data shows you the best of the best, so leveraging these products can be great ways to increase CLTV as well as average order volume (AOV).
Make better choices for acquisition and retention offers. Acquisitions provide an opportunity for a great first impression and retention is the sequence of opportunities to build a closer relationship. Given that the products from this analysis will likely be popular with your customers, they will be safe bets to use in marketing materials and promotions.
In short, they’ll reliably build CLTV.
Bonus tip: By tracking same-cart product affinity among your customers, you can build data-driven cross-sells.
Rather than guessing which products customers are purchasing together, you can see which products customers are purchasing together. If customers happen to be sequentially buying two products among your top 10, we highly recommend that you offer them together. Those will be A+ cross-sells, driven by your Yotpo data.
To make data-driven bundles even more compelling, you can offer a “bundle and save” option, which shows customers the value of a larger purchase. For example, if you sell coffee, you might bundle four different roasts and slash the price by 15%. In doing so, you’re driving up the AOV of a first purchase, and giving the customer more exposure to your brand, where they might find a favorite among the products and repurchase it.
To stack tactics, we recommend that you include your highest-LTV SKU in the bundle.
Using Yotpo and Daasity to build CLTV
With these analyses and strategies in place, you can increase customer lifetime value and reap even more value from your Yotpo Reviews data. All of these Yotpo Reviews analyses can be found via the Yotpo Dashboard within the Daasity platform once you’ve set up the integration. There, you can share reports with your team and drill down into your data further.